Is Pocket Option Regulated in Nigeria? Is it Legit? - TU Expert review
A license is crucial for a broker, providing the legal framework for its operations and confirming compliance with established financial oversight regulations in each country. In light of this, many traders in Nigeria wonder, “Is Pocket Option operating legally in Nigeria? Is it legitimate?”
TU experts have investigated all aspects of Pocket Option operations and are prepared to answer questions regarding the broker's regulation and legality of operation in Nigeria.
Short summary about the broker Pocket Option
Pocket Option caters to both Forex and binary options traders, offering a wide range of trading instruments, a copy trading service, and passive income opportunities.
Clients can trade CFDs on currencies, cryptocurrencies, stocks, indices, and commodities with spreads starting from 1.2 pips and no additional commissions per lot. Pocket Option's unique "My Safe" service offers up to 10% annual interest on unused account balances.
While the platform excels in serving active traders, its demo accounts and referral program also offer value to beginners. However, the lack of cent accounts and ECN options could be a drawback for certain professional traders.
Read more in Pocket Option reviews from clients in Nigeria
| 💰 Account currency: | USD |
| 🚀 Minimum deposit: | $5 |
| ⚖️ Leverage: | 1:1000 for MT4/MT5; 1:1 for options on the in-house platform. |
| 💱 Spread: | 1.2 pips for MT4/5 |
| 🔧 Instruments: | Binary options and CFDs on currency pairs, cryptos, indices, stocks, and commodities |
| 💹 Margin Call / Stop Out: | 30%/50% |
Pros and cons of Pocket Option
👍 Advantages of trading with Pocket Option:
•MetaTrader provides for trading binary options and CFDs;
•A demo mode is available for all account types;
•To register, you may use your Google email or Facebook/Google account;
•Active, social, and algorithmic trading is available on MT4 and MT5 accounts;
•Spreads are from 1.2 pips for Forex and no fees per lot;
•Referral program for retail clients with rewards of up to 50%-80% of the referee’s income;
•“My Safe” service that provides for crediting 10% per annum on the account balance not involved in trading;
•Cash back and promo codes for binary option traders;
•50% deposit bonus.
👎 Disadvantages of Pocket Option:
•The broker offers neither cent accounts for novice traders to test strategies and advisors, nor ECN accounts with near zero spreads for professional traders;
•Real-time communication with operators is available upon funding the account.
Why is it important for a broker to have the license in Nigeria?
A financial license is the key document for any broker. It confirms that the company complies with the requirements of the financial regulator and observes the law. It is important for traders to choose a broker registered their jurisdiction for the following reasons:
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Any claim is filed at the place of the broker’s registration. Accordingly, in case any dispute arises, it will be easier for the trader to file a claim.
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A license issued in Nigeria guarantees that the broker operates in compliance with the laws of this country and reports to the local regulatory authorities.
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Traders can claim compensation under the government programs of deposit guarantees in case the broker experiences financial problems.
It is also possible to choose a broker that is not regulated in Nigeria. In that case, however, the company must have a license from a reliable regulator, for example of an EU country, the UK, USA, Australia, etc.
Is Pocket Option regulated in Nigeria? Broker’s license
Security (Protection for Investors)
Pocket Option is licensed by MISA under number T23322. It ensures that the broker works under international laws and rules of financial markets.
👍 Advantages
- MISA doesn’t set restrictions on leverage that the broker offers to retail clients
👎 Disadvantages
- Pocket Option doesn’t provide its services in the USA, the UK, the European Economic Area, Japan, and several other countries
Brokerage fees
There are no brokerage fees and spreads when trading binary options. Floating spreads are charged on account types for trading CFDs. Pocket Option doesn’t withhold any other trading fees. Also, there aren’t any fees for deposits/withdrawals, account maintenance, or usage of platforms. However, payment providers and banks may charge their fees.
| Account type | Spread (minimum value) | Withdrawal commission |
| Quick Trading (binary options) | $0 | May be charged by a payment agent |
| MT4 | $12 | May be charged by a payment agent |
| MT5 | $12 | May be charged by a payment agent |
| Shares Trading | $10 | May be charged by a payment agent |
Brokers that are similar to Pocket Option
In addition to Pocket Option, also other brokers from this jurisdiction have the license of Nigeria. Pocket Option has many competitors, and before you start working with this broker, you need to compare it to other companies. TU analysts have prepared a comparison of brokers that operate in the Nigeria market and have a license of this or another reliable jurisdiction.
Comparison of Pocket Option with other Brokers
| Pocket Option | RoboForex | Exness | Eightcap | Vantage Markets | FxPro | |
|---|---|---|---|---|---|---|
Trading platform |
Pocket Option, MT5, MT4 |
MT4, MT5, R MobileTrader, R StocksTrader, R WebTrader |
Exness Trade App (mobile), Exness Terminal (web), MetaTrader5, MetaTrader4 |
MT4, MT5 |
MT4, MT5, WebTrader, Mobile Apps |
MT4, MobileTrading, MT5, cTrader, FxPro Edge |
Min deposit |
$5 |
$10 |
$10 |
$100 |
$50 |
$100 |
Leverage |
From 1:1 |
From 1:1 |
From 1:1 |
From 1:30 |
From 1:1 |
From 1:1 |
Trust management |
No |
No |
No |
No |
No |
No |
Accrual of % on the balance |
No |
No |
No |
No |
No |
No |
Spread |
From 1.2 point |
From 0 points |
From 1 point |
From 0 points |
From 0 points |
From 0 points |
Level of margin call / stop out |
No |
No |
No |
No |
No |
No |
Execution of orders |
Market Execution |
Market Execution, Instant Execution |
Market Execution, Instant Execution |
Market Execution |
Market Execution |
Market Execution |
No deposit bonus |
No |
No |
No |
No |
No |
No |
Cent accounts |
No |
Yes |
No |
No |
No |
No |
Is it safe to trade with Pocket Option in Nigeria?
Pocket Option is not regulated in Nigeria. The company does not hold a financial license, which could raise certain security-related questions. Nevertheless, the company has a good reputation and has proven its reliability to traders. Pocket Option offers attractive conditions; many traders in Nigeria have chosen to work with this broker. However, be aware of the risks when working with such companies.
FAQ
How do I check a broker’s license?
Brokers should provide their license on their official website. It is also recommended to check it on the official website of the financial regulatory authority.
Does a broker need to have an official representative office in Nigeria?
Yes. According to the rules of Nigeria, brokers must have an office in Nigeria. This is a mandatory condition for obtaining the license.
Can the license issued by Nigeria be considered reliable protection against fraud?
Yes. The rules of the financial regulator of Nigeria are very strict, which makes obtaining a license in this jurisdiction extremely difficult for scammers.
What kind of information should a broker provide for traders?
On their official websites, brokers must provide the name of the managing company, r egistration certificate, legal address and internal regulatory documents.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.